Showing posts with label Kool Smiles–NCDR. Show all posts
Showing posts with label Kool Smiles–NCDR. Show all posts

Wednesday, August 12, 2020

Another One Bites the Dust: Benevis - Kool Smiles Files For Chapter 11 Bankruptcy

August 3, 2020

Two years after agreeing to pay $23.9 million, plus interest to settle Medicaid fraud allegation Benevis (formerly NCDR, LLC) has filed for Chapter 11 Bankruptcy in the Southern District of Texas. (See Amended Petition here) (See LT Smiles Petition here)

In January 2018 Benevis and it's Kool Smiles branded dental clinics agreed to the settlement after the Department of Justice found the company  "knowingly submitted" false claims for payment to state Medicaid programs for medically unnecessary pediatric dental services.

Benevis and it's Kool Smiles clinics were featured on the first episode of CBS Whistleblower TV program that aired July 13, 2018. (see trailer here)


MARIETTA, Ga.--(BUSINESS WIRE)--Aug 3, 2020--

LT Smile Corporation, along with its subsidiaries Benevis Holding Corporation, Benevis Corporation, Benevis, LLC, Benevis Affiliates, LLC and Benevis Informatics LLC (“Benevis” and “Company”), announced that it has filed voluntary petitions for relief in the Southern District of Texas under Chapter 11 of the United States Bankruptcy Code to effectuate a recapitalization and sale of the business, and to improve its balance sheet and operating position. Benevis and its employees will continue their normal operations and their support of high-quality dental care at supported dental practices throughout the process. None of the Company’s supported dental practices are part of the Chapter 11 filing.

 This is the same scenario as it was with the Small Smiles chain: Chapter 11 first then Chapter 7 soon followed. 

Benevis Corp., which provides back-office services to 150 dental offices, has filed for bankruptcy, saying its revenue fell more than 60% recently due to the coronavirus pandemic.

Benevis claim to provide "back-office" services and that is true, but they also own and operate the clinics using company executives, such as dentists Dale Mayfield, David Veith, and Tu Tran as so called "owner-dentists". Dr. Tran may tried to claim he has nothing to do with the company but he is still being shown as "owner" and "incorporator" of Winchester Dental, PSC d/b/a Ruby Dental and Braces whose address just happens to be the same as Benevis'. Other current and/or past owner-dentists have included dentists Thien Pham and David Strange, Jr.

 Since these places operate on volume and overtreatment (this my own opinion of course, but the DOJ agreed with me) the Corvid-19 pandemic has severely hit their bottom line.

According to Scott Mell's Declaration in the court filings, the companies new Chief Restructuring Officer, the company approximately 70% of the company's income was generated from state Medicaid and CHIP programs.

In the bankruptcy filings:

 The company listed assets and liabilities of as much as $500 million each in its bankruptcy petition. Benevis provides support services to almost 200 dental practices across the U.S., according to its website.

Benevis has lined up as much as $30 million in financing from current lenders including New Mountain Finance Corp., according court papers. New Mountain has also agreed to serve as the stalking horse bidder for the company.

Benevis has secured committed financing from its current lenders; including New Mountain Finance Corporation and several of its credit investing affiliates, to bolster liquidity and enhance ongoing operations during the reorganization process.

Scott Hornbuckle, Chief Financial Officer for Benevis stated, “The additional financing and the reorganization process will help us strengthen our balance sheet and solidify our path to future success. We look forward to continued investments in the future and the continuation of our long history of supporting outstanding dental care.”

Benevis’s legal advisor for the reorganization is Jackson Walker. Conway Mackenzie and Lincoln International LLC are serving as financial advisors to the Company.

Admittedly I nearly choked and puked on the "outstanding dental care" statement. 

Below is the corporate structure according to Scott Mell and was included in his Declaration on page 4.

Maybe it's just me, but I think there might be a few things left out of this little stick drawing. 

In the Amended Petition it lists the 30 largest unsecured creditors.  Henry Schein, Inc., holds the number one spot with Benevis owing them $3,671,336.72!  WHOA!  

LT Smiles Bankruptcy Petition shows the Equity Security Holders as this. To save you some time, that address is New Mountain Capital.

New Mountain Capital SEC Filings

Another familiar name I noticed on the creditors list is Tailwind Capital. They are the PE firm that bought Lone Peak Management Group located in Utah and their Smiles 4 Kids clinics, mostly located in the Northwest. In 2018 a whistleblower came forward with serious allegation against the company and it's leadership.



Friday, November 09, 2012

Mom’s complaining Kool Smiles are still up to their same old tricks–Papoose Boards and False Cavities


Posted November 6, 2012

-- MOM # 1  Ok so I made an appointment for my 3 yo at Kool Smiles for a cleaning a couple weeks ago I wanted to get it done before the new baby came so it would be one less thing I had to do.

Anyways my DH went back with my 3 yo because they were doing Xrays. I called my mother while I was waiting she said I meant to tell you not to take him to Kool Smiles.

She took my brother who was only 6 years old to the same Kool Smiles and they said he had 3 she took him somewhere else and he had none!

Kool smiles was going to strap my 6 year old brother down to fill cavities that he didn't have... I thought wow that's crazy no one could possibly do that. I wouldn't be able to live with myself knowing I put a child though all that pain for no reason but to get some money.

Then I thought maybe it will not be that way cause we do not have Medicaid we pay for insurance.  After they were done my DH informs me we need to make him another appointment to get work done. They said he had 3 cavities!!! (the same number they said my brother had)

They said my 3 year old had 3 cavities. I was soo upset I cried. I felt like the worst mom in the world! I'm 26 years old and only ever had one cavity and my little boy already had 3. He brushes his teeth and I brush behind him and he doesn't eat a lot of sweets.

I didn't make him another appointment. We just left. I'm taking him somewhere else. Has anyone had any problems like this? How do they get away with this sort of thing. It's terrible

--MOM # 2 Yes, it has happened to me. I had a gut feeling I didn't have a cavity (bc I never do) and I just didn't trust the guy. Went for a second opinion and I was right! Drs prob think that they "need" the $ and ins us paying for it anyways.

-- MOM # 3 -Be careful they will keep calling you!!! I took my son last year for his first appt and hated it, I told them I would schedule his next one when I looked at my calendar (lie, I was trying to be nice).

For the last 6 months they call from 3 or 4 diff numbers as early as 7 am and as late as 8pm. I even told them they had the wrong number and they keep on. Told them to stop calling and they still keep on! Hate them!

--MOM # 1 So funny you said that cause they actually called me today to confirm an appointment that they set for my son without me or my husbands permission. I will never bring my children there again the is actually a pediatrician in my area that has a sign posted saying not to bring your children to Kool Smiles.